Asia down on G7 forecast

GLOBAL MARKETS/ STOCK REPORT

Asian stocks fell, led by Kookmin Bank and Commonwealth Bank of Australia, after Group of Seven policy makers said the fallout from the US housing slump may further sap global growth.

Kookmin slumped the most in more than three years as South Korean stocks resumed trading after a three-day holiday.

Commonwealth Bank dropped after the nation's central bank said it may raise borrowing costs. Reliance Power plunged on its first day of trade after it raised $3 billion last month in India's biggest share sale.

The MSCI Asia-Pacific excluding Japan Index lost 2.6 per cent to 456.57 as of 6:15 pm in Hong Kong, its lowest since January 23. South Korea's Kospi fell 3.3 per cent. The Sensex slid 4.8 per cent, the most in Asia.

Bank of Communications led Chinese financial companies lower after Goldman Sachs cut their share-price targets. Hong Kong and Singapore dropped following Lunar New Year holidays. Japan, China and Taiwan were shut on Monday. EUROPE
European stock-index futures retreated, following declines in US and Asian markets, after the comments of G7 officials.

UBS, Europe's biggest bank by assets, and Royal Bank of Scotland Group Plc decline. CRH and Holcim may lead building materials companies lower after Goldman Sachs cut its recommendation on the shares.

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, lost 36 points, or 1 per cent, to 3,686 at 7:28 am in London.

"Fear is stalking the world," said Andy Brough, executive director at Schroders Investment Management in London, who helps oversee $6.5 billion. For banks ``the question is, are there any more skeletons left on the balance sheets.'' US
US stock-index futures were little changed. Yahoo! advanced in Europe on speculation the owner of the world's second-most popular Internet search engine may reject a $44.6 billion takeover bid from Microsoft.

Motorola rose after the Wall Street Journal said the biggest US mobile-phone maker and Nortel Networks may combine their wireless infrastructure units.

Cisco Systems, the world's largest maker of computer-networking equipment, and Oracle retreated after a report that information-technology spending may slow.

Standard & Poor's 500 Index futures expiring in March added 1.4 points to 1,331.7 as of 10:38 am in London. Dow Jones Industrial Average futures increased 11 points to 12,188. Nasdaq-100 futures dropped 0.25 points to 1,776.25.